Scientific Capital Arranges 2.03 Million USDA B&I Financing for Super 8 in Nevada

Irvine, CA, July 04, 2010 --( Scientific Capital arranges a 2.03 million USDA B&I loan for the refinance of the Super 8 in Battle Mountain, Nevada. The project was financed at 78% Loan to original purchase Cost (LTC).

The complexity of this project was to meet the USDA required 10% tangible equity. The issue with any USDA hotel refinance is that USDA requires 10% tangible equity on a CPA GAAP prepared balance sheet both on the current and the post-closing proforma basis. However, each year a hotel is depreciated, the equity drops as indicated on the tax return's balance sheet. If the tangible equity then drops below 10%, before applying for a USDA loan, borrower has to infuse additional equity in the business operating account to reach the 10% tangible equity.

In this project, Scientific Capital was able to mitigate the depreciation impact and to qualify the project for the 10% tangible equity requirement.

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Scientific Capital Group, Inc. ( is a national hotel financing brokerage company located in Irvine, California. For more information, please contact Ramin Mostaan at (949) 477-5000 or email at

Scientific Capital Group, Inc.
Ramin Mostaan
949 477 5000
National Hotel Finance Company